What is the present value of a lottery paid as an annuity
What is the present value of a lottery paid as an annuity due for twenty years if the cash flows are $250,000 per year and the appropriate discount rate is 7.50%?
A. 3,186,045.39B. 2,5548,622.84C. 2,739,769.55D. 5,000,000.00
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Tonia saved $47,000 for college and wish to use $15,000 per year. If you use the money as an ordinary annuity and earn 6.15% on your investment, how many years will your annuity last? Use a calculator to determine your answer.
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